The recent outlook on the Malta Stock Exchange index failed to improve as the MSE’s negative tally now increased to four straight weeks. Throughout the week, the local equity and bond market was subject to the aggravated political and economic uncertainty witnessed on the international scene. The political unrest in Libya predominantly exerted pressure on locally traded bonds issued by local companies with business ties and operations in Libya. In fact, running yields on such bonds increased considerably following the significant price drops experienced over the week.

Indeed, turnover in the fixed income market jumped to €8.6 million, up from nearly €3 million traded during the previous week. In the Corporate Bonds market 174 deals of just under €1 million were executed as activity was spread across 33 bond issues. Meanwhile, in the Governments Stocks market over €7.6 million was dealt across 110 deals.

In the Equity market the local index moved more or less in line with its foreign peers ending all five trading days in the red as it closed yesterday’s session at 3,609.639 points, hence down by 5.12 per cent on the week. Week-on-week, turnover declined by almost half that traded last week as a value of €678,272 was dealt over 200 deals of 295,462 shares. Bank of Valletta plc shares were again the week’s most liquid with over 99,000 shares being traded, while HSBC Bank Malta plc headed the list of fallers with a hefty 13.62 per cent or €0.47 decline.

Notwithstanding the positive financial results announced last week by HSBC Bank Malta plc, the equity succumbed to selling pressure as it closed lower during four trading days. Investors seemed to be reacted negatively to the proposed final dividend payment which did not reflect the increase in profit. The equity closed the week at €2.98 after having traded at a weekly low of €2.95 as a total of 92,644 shares were dealt across 47 transactions.

Bank of Valletta shares closed in the red with a minimal loss of 0.33 per cent or €0.01. After having started off the week on the upside, the banking equity moved lower during three trading days while it traded flat mid-week to end the week at €2.99. Nearly €300,000 was dealt across 103 deals of 99,404 shares.

FIMBank plc also closed on the downside with a 5.26 per cent or $0.05 loss as 8,720 shares changed hands over six deals, while Middlesea Insurance plc shares declined by nearly four per cent. The insurance firm kicked off the week in positive territory, however posted losses during the closing two sessions to end the week at €1.01.

Meanwhile, Maltapost plc shares failed to maintain the upbeat enjoyed lately as the equity followed the negative trend which surrounded the equity market. In fact, the postal operator closed down with a 5.45 per cent or €0.06 loss as it closed the week’s final session at €1.04.

Following last week’s hefty loss Malta International Airport plc shares closed the week under review flat at €1.75 as trading volume declined to 5,200 shares, down from over 39,500 shares traded last week. Likewise, Midi plc traded flat at €0.45 as one deal of 10,000 shares was executed on Wednesday.

In the IT Sector, Crimsonwing plc shares remained intact at €0.379 as two transactions of 22,000 shares were recorded during the week’s opening and closing sessions. On the other hand, RS2 Software plc suffered an 11 per cent or €0.05 decline as 4,500 shares were dealt across two deals, as the equity closed yesterday’s session at €0.40.

Go plc maintained its negative momentum as the equity shed a further 3.17 per cent or almost €0.06 to end the week at €1.80. Throughout the week the equity’s price fluctuated between a low of €1.785 and a high if €1.801 as 17,700 shares were dealt across 15 transactions.

Two thin trades of 400 shares in Plaza Centres plc pushed the equity’s price lower by nearly eight per cent or €0.13. The equity closed the week at €1.52. Meanwhile International Hotel Investments plc lost just over one per cent as the hotels’ operator closed the week at €0.929. A total of 10,000 shares changed hands over three deals. Island Hotels Group Holdings plc edged minimally lower with a 0.1 per cent decline to close the week at €0.997 as 600 shares were traded over two deals. On Monday, the board of directors of Island Hotels Group Holdings plc approved the financial results for the year ended October 31, 2010 reporting a loss before tax of €0.6 million compared to a profit of €1.62 million for the same period the previous year.

This article, which was co-mpiled by Atlas JMFS Investment Services Limited, does not intend to give investment advice and the contents therein should not be construed as such. Atlas JMFS is licensed to conduct investment services by the MFSA and is a member firm of the Malta Stock Exchange.

The directors or related parties, including the company, and their clients are likely to have an interest in securities mentioned in this article.

For further information contact Atlas JMFS at 67, Level 3, South Street, Valletta, or on Tel: 2122 4410, or e-mail info@atlasjmfs.com.

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